Minimizing Fees
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Thread: Minimizing Fees

  1. #1
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    Minimizing Fees

    I am starting up a new portfolio and was looking for suggestions on which brokerage to use to minimize my fees, I am planning to buy mainly ETFs using the Canadian Couch Potato method as well as mimicking the ETF portfolios on Wealth Simple and Questrade IQ.

    1) Which brokerage do you recommend to minimize or eliminate comission as well as other fees? --I probably won't be trading much since I am taking the couch potato approach

    2) Is my strategy of copying the Wealth Simple and Questrade IQ portfoilios a good idea?

    Will be investing 100k

    thank you

    Last edited by mikeyrofl; 2017-03-31 at 09:35 PM.
    Your thoughts on: XUU 30% / XEC 10% / XEF 15% / VSC 5%/ XIC 40%

  2. #2
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    Don't get too focused on fees. If you're <0.5% then you're good. People get a bit crazy over saving an additional 0.1 sometimes - which is $10 a year on 10,000.

    I used TD waterhouse. It can be a bit annoying but the flexibility of the e-series works for me when I add occasional cash and don't want to pay the $10 trading fee.

  3. #3
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    Quote Originally Posted by mikeyrofl View Post
    ... I am planning to buy mainly ETFs using the Canadian Couch Potato method as well as mimicking the ETF portfolios on Wealth Simple and Questrade IQ.

    1) Which brokerage do you recommend to minimize or eliminate comission as well as other fees? --I probably won't be trading much since I am taking the couch potato approach ...
    Without knowing which ETFs and what the starting amount is, it is hard to say.

    Some have used the bank version of the TD eSeries MFs to build up their $$$ until they can qualify for the cheaper commissions. Some have figured out which particular discount broker offers the ETFs they are okay with on a "no commission to buy" basis.


    Quote Originally Posted by mikeyrofl View Post
    ... 2) Is my strategy of copying the Wealth Simple and Questrade IQ portfoilios a good idea?
    Do either of them tell you enough to "copy" them without being a customer?


    Cheers

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    Quote Originally Posted by none View Post
    Don't get too focused on fees. If you're <0.5% then you're good. People get a bit crazy over saving an additional 0.1 sometimes - which is $10 a year on 10,000.
    Or $1,000 on $1,000,000. Bringing expenditure down from 0.5% to 0.1% saves you $4,000+ every single year for the rest of your life. Well worth having.

  7. #6
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    Thanks all, I'll be investing 100k for 3-5 years time horizon, very aggressive as I am in my mid-30s

    1) What do you think about WealthSimple's portfolio here vs. building my own version of that with buying ETFs? How do you think the MERs compare? Would it be cheaper if I build it myself - but givven the comission fees would it be cheaper to just go with wealthsimple or wealthbar?
    https://help.wealthsimple.com/hc/en-...lio-performed-

    2) If you;d suggest I build it myself which brokerage do you recommend? Questrade?

    Thanks
    Your thoughts on: XUU 30% / XEC 10% / XEF 15% / VSC 5%/ XIC 40%

  8. #7
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    Quote Originally Posted by mikeyrofl View Post
    Thanks all, I'll be investing 100k for 3-5 years time horizon, very aggressive as I am in my mid-30s

    1) What do you think about WealthSimple's portfolio here vs. building my own version of that with buying ETFs? How do you think the MERs compare? Would it be cheaper if I build it myself - but givven the comission fees would it be cheaper to just go with wealthsimple or wealthbar?
    you can certainly build it yourself, but then you will need to figure out a way to balance/rebalance and buy/sell in proportion. you'll also need to consider which accounts
    (tfsa/rrsp/non reg) to place each etf in for tax efficiency. as to whether the MER is more, you will need to calculated the weighted average MER for all the funds listed and see if it is cheaper to DIY and by how much.

    finally, will you be more willing to make regular contributions if you have a hands-off set up like wealthsimple. much of investing is behavioural, and if you are going to sit on your hands and avoid adding cash in order to avoid tinkering with a spreadsheet, then the increased cost may be worth the ease of transaction.

    2) If you;d suggest I build it myself which brokerage do you recommend? Questrade?
    questrade is great because of the low fees and no-commision ETF purchasing. a few years ago they were the only no-commission ETF purchase broker, but now there are others.

  9. #8
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    Quote Originally Posted by mikeyrofl View Post
    Thanks all, I'll be investing 100k for 3-5 years time horizon, very aggressive as I am in my mid-30s ...
    It may fluctuate a fair bit in value over such a short time horizon ... unless you can cherry pick a high.


    Quote Originally Posted by mikeyrofl View Post
    1) What do you think about WealthSimple's portfolio here vs. building my own version of that with buying ETFs? How do you think the MERs compare? Would it be cheaper if I build it myself - but givven the comission fees would it be cheaper to just go with wealthsimple or wealthbar?
    Not sure what you are comparing against ... there's TD eSeries through a bank that won't have commissions but will have something like a 0.47% MER across the portfolio, there's ETFs that if the buys are free then the sells shouldn't contribute much to the 0.12% to 0.16% MER.

    http://canadiancouchpotato.com/model-portfolios-2/


    There there's always the question of how much value you have on having control versus handing the $$ over.



    Cheers

  10. #9
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    Quote Originally Posted by none View Post
    People get a bit crazy over saving an additional 0.1 sometimes - which is $10 a year on 10,000.
    Ten dollars is ten dollars. That's $10 you don't have to set your alarm for, commute for, be away from friends and family for, go to bed early for, worry for, pay tax for. In other words I completely disagree with what you're saying.

  11. #10
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    YMMV ... I've worked with people who sweat the $10 a year then promptly spent by buying 3 Starbucks coffees a working day x $5 each x five days a week x four weeks per month x ten months of the year without a second thought.

    The irony was that a coffee maker was available to them for a fraction of the cost.


    Cheers

    Last edited by Eclectic12; 2017-04-10 at 04:49 PM.

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